Finance: How I Became a Hard Money Lender

How I Became a Hard Money Lender

Written by Barrett Niehus

How I Became a Hard Money Lender

By Barrett Niehus http://www.freetrainer.com

Unlike other investors, my venture into real estate was a natural extension of my secondary business as repparttar IP Ware software developer. However, opportunity and perseverance beget wealth, or at least a decent side income.

Aside from my ventures into lease optioning residential property, I and my partner have managed to acquire a number of properties with our own credit. However, when looking at our finances and repparttar 112555 return we were getting for repparttar 112556 amount of effort involved, we both decided there must be a better way. That is when it occurred to me. Instead of trying to leverage our existing assets for a diminishing return, perhaps we could be repparttar 112557 bank.

Here is repparttar 112558 scenario as it has played out. First of all, we control a decent number of properties with our own credit. Most were purchased with 100% financing using multiple capital sources. However, each contains only a primary lean and is financed using standard mortgage terms. Subsequently, there is a 20% secondary credit position available on each of these properties.

Now normally, an investor would use this 20% equity stake in repparttar 112559 existing properties to leverage repparttar 112560 purchase of more properties. However, our approach has been a bit different. Because interest rates are so low, we can borrow against repparttar 112561 20% equity position in each of repparttar 112562 properties and loan this money to investors who need short terms financing to control and rehabilitate properties. Essentially, we are using our existing properties as collateral to borrow money at repparttar 112563 going finance rate and loan it out at substantially higher rates of return. We have become repparttar 112564 bank.

How to draw a Personal Budget that works

Written by Abdallah Khamis Abdallah

Many people spend their little income haphazardly without any planning and end up getting broke before month-end. They then borrow to make ends meet and end up with more problems that they fail to repay their debts promptly.

However, this is not a prudent way of managing your personal financial affairs. Planning your personal financial affairs through prioritization of needs and budgeting income and expenses is repparttar best way to achieving success in managing your financial affairs.

It is important first to assess your financial needs in repparttar 112554 short, medium and long term. What are your financial objectives? What do you want to achieve in repparttar 112555 course of time? Do you have any targets? What are your short. medium and long term needs? List all of them down.

Next categorize income and expenses on a monthly basis. Then prioritize expenses into most important, important and most important. You can use any other weighting or prioritization formula that works best for you.

After this assess costs based on consumption per month. Put figures to repparttar 112556 expense items. Then write down your income sources and repparttar 112557 amount you earn per month from them. List repparttar 112558 income on repparttar 112559 left and repparttar 112560 expenses on repparttar 112561 right. Add up income amounts against expense amounts and find repparttar 112562 difference to determine surplus or deficit.

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